It's no secret that Toronto's condo market took a bit of a beating over the course of the past year. Though, thanks to stronger economic optimism and low interest rates, activity is once again picking up speed after more than 2,600 condo sales were recorded last month.
In March, condo sales in Toronto soared 87.9% year-over-year, with 2,614 transactions, while the 905-area saw 1,207 sales close (a 99.2% year-over-year increase), for a total of 3,821 condo sales in the Greater Toronto Area (GTA) -- a 91.3% increase from March 2020 -- according to the latest data from the Toronto Regional Real Estate Board (TRREB).
According to the board, there were 3,371 new listings entered into the MLS system last month and there are now 2,012 active condo listings left in Toronto.
The board said the average price for a condo in Toronto fell slightly last month (0.7%) to $707,835, while prices climbed 13.5% in the 905-area to $607,220 -- bringing the overall average price for a condo in the GTA up 2.6% to $676,052.
READ: GTA Home Sales Up 97% in March, Average Selling Price Hits $1.1M
This comes as the average price for all home types in the Toronto-area soared 16.5% in March to nearly $1.1 million. The average includes all home categories, including condos, townhouses, semi-detached, and detached houses.
This price increase is fuelled by Toronto-area detached homes, which accounted for 7,577 transactions last month (a staggering 103.5% year-over-year increase), with the average price climbing 26.6% to $1,402,849.
That compares to a 19.2% average price jump to $1.75 million for detached houses in Toronto proper.
To put it simply, as the price of detached homes continues to skyrocket, condos are now being viewed as the more affordable option in Canada’s largest city.
And while condo prices aren't experiencing the gains detached homes are currently seeing, there's clearly a turnaround in demand for condos.
But as Jason Mercer, Chief Market Analyst for TRREB, told STOREYS last month, as sales growth continues to outstrip listing growth on a year-over-year basis, "the market conditions are tightening up again."
The continuation of this trend, Mercer explained, would lay the foundation for renewed price growth in the downtown condo segment. He predicts these shifts could be evident in the market as early as the second half of 2021.
Benjamin Tal, Deputy Chief Economist of CIBC World Markets Inc., shares in Mercer’s prediction.
“I think the softness in the condo space can be sustained over the next few months, but I believe that the second half of the year and clearly into 2022, you will see an increase of activity in this market,” he previously told STOREYS.
“It’s starting, already, to stabilize,” added Tal.
With files from Kayla Gladysz.
